Private Label

Definition

A private label is a product manufactured by a third party but sold under a retailer’s brand name, often at a more affordable price compared to national brands.

Scientific / Technical Definition

Private label products are produced by external manufacturers and sold exclusively by a particular retailer. These products often replicate popular branded items but are marketed as store brands, offering competitive pricing and sometimes unique formulations.

Benefits

• Often cheaper than national brands while maintaining quality.
• Exclusively available at the retailer, fostering brand loyalty.
• Provides retailers higher profit margins compared to national brands.

Examples

• Grocery store's own brand of cereal or snacks.
• Pharmacy-brand health and wellness products.
• Supermarket's store-brand cleaning supplies.

Additional Information

• Price Advantage: Private label items generally offer a lower price point, making them attractive to budget-conscious shoppers.

Related Terms

• Generic Brands
• National Brands
• Branded Products
• Store Brands

References

• The Rise of Private Label Brands
• Private Label vs National Brands